Kolter Group and Perko Development dropped $37.6 million on the buyout of an aging condominium in West Palm Beach across the water from Donald Trump’s Mar-a-Lago Club.
The partners bought all 38 units in Flagler House at 3705 South Flagler Drive from the individual owners and terminated the condo association, the South Florida Business Journal reported. Prices for individual units ranged from $850,000 to $1.8 million, according to property records. Kolter Group and Perko Development are planning an 18-story, 39-unit luxury condo project on the site, which they won approval for in May, according to the Palm Beach Post. The new condo will retain the name Flagler House.
The new Flagler House’s units will range in size from 2,800 square feet to 10,200 square feet, the Business Journal reported. Ten units will span two bedrooms, 20 units will have three bedrooms, eight units will include four bedrooms and one penthouse will have seven bedrooms.
Amenities in the building will include a fitness center, pool, theater, club room, lounge, cafe and spa treatment room, the outlet reported. Perko and Kolter tapped Coral Gables-based SB Architects and interiors firm Urban Design Studio to design the project.
The existing Flagler House was built on 1.4 waterfront acres in 1985, and is directly across the Intracoastal Waterway from the president’s private club in Palm Beach.
The buyout illustrates both developers’ appetite for waterfront land in West Palm Beach, and the difficult position of unit owners in aging buildings facing South Florida’s new condo laws.
The pandemic precipitated a wave of wealth migration into West Palm Beach from the Northeast, and developers are responding to the demand with thousands of units in the pipeline across the city. Earlier this month, billionaire Related Ross chairman Steve Ross landed $600 million in construction financing for his similarly named South Flagler House, a 28-story, two-tower project with 105 units and prices ranging from $7.9 million to $73 million.
–– Kate Hinsche
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